Loss of Profit (LPF) is a " Profits" policy secures to Manufacturers, Traders, and Industrialists indemnity against loss of net profit & standing charges resulting from fire and other insured risks.
The objective of this policy is to provide compensation for the loss of Earning Power the event of fire and other perils covered. A fire of small dimensions can cause serious dislocation of business and result in heavy Loss Profits. Hence, this insurance policy is as much necessary as the material damage insurance.
The rates of premium are fixed according to the nature of business carried on by the Proposers and the Indemnity Period selected.